Pilot Energy Ltd. has executed an agreement with Empire Oil & Gas NL to farm in to Empire’s EP416 and EP480 exploration permits in the Perth Basin of Western Australia.
Under the terms of the agreement, Pilot Energy will pay the cost of Empire’s recently completed airborne geophysical survey of the permits, by paying an initial $105,330 (AUD 150,000) to Empire. A further $210,660 (AUD 300,000) will be payable upon the parties satisfactorily negotiating amendments to the permit terms with the regulatory authority (in order to optimize the exploration program for the permits, and anticipated to occur early second quarter of 2016). At that point, Pilot Energy will earn a 60% interest in EP416 and EP480, and assume operatorship of both permits. Pilot Energy will also fund Empire’s share of permit-related costs (excluding seismic and drilling costs) for a period of 24 months.
EP416 and EP480 are contiguous permits located in the southern part of the onshore Perth Basin, on the coast of Western Australia between the towns of Mandurah and Bunbury. The permits cover a combined area of 892 square miles (2,310 square kilometers). Only three wells have been drilled within the permits, two of which were drilled in the 1960s. A more recent well was drilled in 2012 as part of a carbon geosequestration study program.
The primary reservoir target is the Permian Sue Sandstone, with a secondary target in the overlying Leseur Sandstones.